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:: Starting your eBay.com business :: |
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Find suppliers who can give you credit,
at least get reliable sources for your inventory. If you can get
credit, use it, sell immediately and get paid right away while
you pay 30 days. One of the best ways to be successful on
eBay.com |
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Take advantage of all the eBay.com
listing promotions such as half price listing, discounts on
picture services and other great offers you can receive via
email. |
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:: Planning for Deductions :: |
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Start organized. Keep track of all
your purchases, your investments and overall your receipts which
you may one day need. Learn the tax categories and assign the
expenses to the appropriate tax category. |
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Get a good accounting software such
as QuickBooks or Peachtree, try to get a tax aid program as
well, we give you here some good examples. |
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:: Things you should avoid :: |
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Never mix
your eBay.com income and expenses with your personal finances.
Keep track of personal investments and learn here how you can
apply your personal investments to avoid trouble or double
taxation. |
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Do not use
the cash method accounting; use the accrual accounting method
which means that your expenses are recorded as they occur
regardless of when cash actually changes hands. Sales are
recorded into the books when the invoice is generated, not when
the cash is collected. Expenses occurs when materials are
ordered. This is explained in detail in other section. |
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eBay.com is
not in charge of collecting taxes for your. You must never
forget this, even if they offer you to record some transactions,
sales are usually only kept for a few months only. Paypal does
keep it longer but then again, not on detail and you may also
get paid using other payment methods. Do not leave it to
eBay.com do your homework. |
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Collecting Sales
Tax |
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As a seller,
you are supposed to collect sales tax in your state but you can
avoid this by having a corporation based on a state such as
Delaware, Nevada or Montana. You can also advice your visitors
that you cannot sell to people within your state otherwise you
have to collect sales taxes. |
